Owning a “green” car is no longer enough to guarantee VAT deduction. The Circular imposes precise and mandatory criteria.
- Cost limits: the rule that determines everything
- ⚡ Electric vehicles: up to €62,500
- 🔌 Plug-in hybrids: up to €50,000
- 🟢 LPG/CNG: up to €37,500 → VAT deduction limited to 50%
If the total cost (vehicle + extras + legal expenses) exceeds these limits, all VAT becomes non-deductible.
- Leasing and renting: the invoice determines VAT
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- ✔ Factura con líneas separadas → solo es deducible el IVA de la locación, si el vehículo respeta los límites.
- ✘ Factura con importe único → IVA no deducible.
- Private use: deduction triggers taxation
If VAT is deducted under Article 21(2)(f) or (g):
➡ private use becomes a taxable service, proportional to private kilometres.
Conclusion
Circular Letter 25088/2025 clarifies and tightens green-vehicle VAT rules. Companies must check total cost, demand detailed invoices and monitor private use to avoid adjustments.
How Nominaurea can help
Nominaurea provides:
- tax assessment of vehicle acquisitions,
- verification of VAT deduction eligibility,
- leasing/renting invoice and contract review,
- private-use monitoring tools,
- inspection-ready documentation.
